Biggest Bang For My Buck

[Jeremiah Moss]

Hi All, My name is Jeremiah. I just recently sold a property and have had 2 rental properties and flipped 2 houses in the past. Both were profitable but it wasn't the prettiest method... I am currently debt free loan free and have $40,000 of investment capital stashed away and about $10,000 to live on as I am a single 30yo male living in a 2 bedroom apt paying $1200 for rent and utilities Have a job that pays roughly $3,500 a month on average. I am about to relocate and will rent for 6months at my new location until I am sure it's where I want to plant long term roots. The town I will be moving to is a college town and properties can be quite expensive per cap rate. I guess what I am asking is should I A. Buy a house live in it while I flip it. B. Buy a Townhouse Duplex live in 1 side rent the other. (On average they are asking 160,000 per unit meaning $320,000 'could probably negotiate to $275,000' for the lot, average rent being $950 per unit) C. Buy 2 separate dump houses make one of them rentable while living in it and rent the other and then swap them out and do the same thing to the other. Any input would be appreciated!

[Abel Curiel]

Hello Jeremiah, 

Just off the bat, it seems like rents are a little low for option 2 to make sense. Its tough to pick a best option for you without knowing what your goals are. You mentioned already having done 2 flips and having 2 rentals under your belt. 

If you're looking for positive cash flow, identifying areas with high potential for cash flow will help you narrow your search and make a decision on which route to take. Same thing can be said if you're looking for less cash flow and more appreciation over time. Search around/ask around here on BP for specific areas that might meet your goals.

In the meantime, don't do anything drastic! You have a good income, good reserves, no debt, moderately priced rent and you're only 30! TAKE YOUR TIME! Once you identify your business approach and target area, you'll be in great shape.

Best of luck to you!

-Abel